Minimum requirements, I really don't know for sure but:
- It should be able to run .net (maybe MS has some min req.)
I would advice you to use a liquid bearing harddisk as it will be spinning all th time.
Just for playing music anything over a 1ghz machine with 256mb on XP should have zero lag... probably could get by with much much less though, the only thing I could see being lagged is changing screens if you were on a slower machine. Audio should run fine on a p3 350 even